WRITTEN TESTIMONY TO THE COMMITTEE ON WAYS AND MEANS
BY THE AMERICAN FOREIGN SERVICE ASSOCIATION
TO AMEND HB 245 TO INCLUDE FOREIGN SERVICE ANNUITIES FOR
EXEMPTION FROM STATE TAXATION  

 
Madam Chairwoman and Members of the Committee:

         The American Foreign Service Association (AFSA) applauds Maryland's efforts to recognize not only the sacrifice made by this nation's Armed Forces, but also the many benefits military retirees bring to their local communities and economies of the State of Maryland. However, AFSA also respectfully requests that HB 245 be amended to include the members of the Foreign Service of the United States in exempting from taxation the annuities received by members of the Foreign Service and their survivors for their service to Maryland and to this nation. As with the military, retired members of the Foreign Service have had long and distinguished careers dedicated to serving this nation. As residents of Maryland during their careers and in their retirement, they, too, contribute unique benefits to the history, communities and economy of the Free State.

         The American Foreign Service Association, founded in 1924, is the professional organization and, since 1973, the recognized federal bargaining agent for the 23,000 active-duty and retired members of the Foreign Service. AFSA's primary missions are to enhance the effectiveness of the Foreign Service, to protect the personal and professional interests of its members, to ensure maintenance of high professional standards for both career diplomats and political appointees, and to promote understanding of the critical role the Foreign Service plays in promoting America's national security and economic prosperity.

         Like the Armed Forces, the Foreign Service has an "up-or-out" personnel system. Thus usually members of the Foreign Service are in their mid- to late 50s at their separation from the Service. They are highly trained and skilled federal employees who are sought after by many government agencies and private corporations after they retire. Because they continue to possess and acquire important and competitive skills during their second careers, they truly benefit their employers and the state. Furthermore, because Foreign Service personnel are well educated, have experienced many different cultures and societies, and are naturally service-oriented, in their private lives they contribute in many ways to their communities.

         The men and women of the Foreign Service serve the American people on the front lines of freedom. Like the military, they hold their rank in person, compete in rigorous selection and promotion systems, and are required to be worldwide-available in protecting and advancing our nation's interests abroad. In fact, the average member of the Foreign Service spends about two-thirds of his/her career overseas while, by law, maintaining a residence in the United States.

         As we follow the news, we know that service abroad is becoming increasingly difficult and dangerous. Twenty years ago, 35 U.S. embassies and consulates were rated as places of "extreme hardship." Today, that figure stands at 75 embassies and consulates in 62 different countries, and it continues to rise. Currently, there are over 500 positions around the world where it is considered too dangerous for Foreign Service personnel to be accompanied by family members, and so those employees go to the posting alone because the position must be manned. Within the last six years, members of the Foreign Service have been killed in Kenya, Tanzania, Jordan, Pakistan and Iraq. AFSA honors our colleagues killed abroad on two large memorial plaques in the diplomatic entrance of the Department of State. Of 215 names on those plaques, 141 have been added since the end of World War II, and 104 of those named died from terrorist attacks or other hostile action. Sadly, we will be adding three more names this May on Foreign Affairs Day.

         Madam Chairwoman and members of the Committee, as you remember and honor those who served in uniform, we hope that you will also recognize the service of the men and women of the Foreign Service through their inclusion in HB 245. However, AFSA does not ask this because you are honoring those who retired from the uniformed services. We believe that the retired men and women of the Foreign Service have earned this on their own merits. They have served this nation diligently and faithfully, protecting and advancing the interests of the United States around the world. And following their retirement from the Foreign Service, they continue to be productive, civic-minded citizens of Maryland - retirees that any state would welcome and hope to keep.

         Madam Chairwoman and members of the Committee, the American Foreign Service Association appreciates the opportunity to provide our views for your consideration and urge you to amend HB 245 to include the retired members of the Foreign Service of the United States.